InCred looks to invest Rs 50 crore in Walnut

Investment

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InCred offers loans for personal needs, education and small businesses.

BENGALURU/MUMBAI: Non-banking finance company InCred Finance is seeking to invest around Rs 50 crore into Pune-based personal finance management startup Walnut as the Anshu Jain-backed company is extending its investments in new-age companies, said two people in the know of the matter.

This company, run by ex-Deutsche Bank senior executive Bhupinder Singh, was started about two years ago with its expanding product kitty. It offers loans for personal needs, education and small businesses. The likely investment may mark its first significant foray into the new age digital world.

InCred declined to comment on the matter while Walnut said that they did not want to comment on the development at this point of time.

Sequoia and SAIF Partners backed Walnut with close to 10 million users in India, offers a personal finance management solution through a mobile application. It allows its users to split funds between friends, do bill payments, track spends and check card and bank balances and do peer to peer transactions. The company claims to be one of the first startups to offer direct card to card payments in India and is on track to get into Unified Payments Interface for transactions as well.

A few weeks ago, Walnut has also launched Walnut Prime which allows its users to access consumer loans up to Rs 1 lakh to be directly moved into their bank accounts. During the demonetisation period, Walnut had offered a queue management system which helped its consumers find out about queue at a specific terminal and availability of cash.

People in the know of the matter said that discussions are on and Walnut could be trying to raise funds from other sources as well, however ET could not independently verify Walnut’s fund raising plans.
InCred, which had once aspired to be a full-swing fintech company operating from Singapore, changed its plan only to tap huge credit potential in India. It is again trying to expand into the fintech space, an emerging trend that New Delhi too encourages. Last week, ET reported that Capital First had invested around Rs 47 crore in online micro lending platform SMECorner.

[“Source-economictimes”]

Written by Loknath Das